FY2014-2018
Country Partnership Strategyfor Nepal
4
ExEcutivESummary
Fy2014-2018
Country Partnership Strategyfor Nepal
i. Nepal has achieved remarkable progress over the last
years. The country managed to halve the percentage of people
living on less than $1.25 a day in only seven years, from 53
percent in 2003/2004 to 25 percent in 2010/2011. Several social
indicators in education, health and gender have also improved.
In addition, since the end of the civil war in 2006, Nepal has
successfully transitioned away from being a post-conflict
country and former combatants have been integrated into the
country’s armed forces. While the country’s political transition
– notably the drafting of a new constitution – is taking longer
than expected, the November 2013 elections, which resulted in
a peaceful transfer in power, were an important step toward the
formation of an inclusive and democratic state.
ii. To build on this progress, Nepal needs to take
advantage of its economic potential and put in place
the prerequisites that will provide faster, sustained
and inclusive growth. While the political process remains
intricate (understandably so, given Nepal’s relatively short
experience with democratic governance), the country
urgently needs to pay greater attention to the economy.
Remarkably, Nepal’s economy grew steadily even during the
height of the conflict, and economic management remained
prudent, resulting in a budget surplus in 2013. Yet growth
levels are too low to enable Nepal to continue its past
progress and relegate poverty to history. Current growth
relies heavily on remittances supporting consumption and
growth in basic services with low growth potential.
ExEcutivESummarY
4FY2014-2018
Country Partnership Strategyfor Nepal
5FY2014-2018
Country Partnership Strategyfor Nepal
iii. To move to a higher growth trajectory, Nepal will have
to remove bottlenecks to private and public investment
in key growth sectors. The most vivid example of Nepal’s
economic potential is hydropower. While the estimated
potential for hydroelectricity generation in Nepal is 84,000
megawatts (MW), of which at least half is economically viable,
only 746 MW (less than 2 percent of the viable potential) is
currently developed. Hydropower development could be a
game changer for Nepal. Development of the sector would
reduce load-shedding and provide major revenues through
exporting electricity to India and Bangladesh.
iv. The World Bank Group stands ready to support Nepal’s
aspirations for increasing economic growth through
increased investments in key sectors and making growth
more inclusive to help equalize opportunities across
groups and communities. This constitutes a major shift
in World Bank Group (WBG) support away from short-term
post-conflict assistance towards establishing the foundations
for increased, inclusive and sustainable growth. After three
consecutive interim strategies in Fiscal Years (FY) 2007, 2009
and 2011, the WBG will provide more long-term support. The
Country Partnership Strategy (CPS) will cover four years from
FY2014-2018.
5FY2014-2018
Country Partnership Strategyfor Nepal
6
ExEcutivESummary
Fy2014-2018
Country Partnership Strategyfor Nepal
v. World Bank Group support to Nepal will be aligned
to the Bank’s twin global goals—eliminating extreme
poverty and boosting shared prosperity. A poverty “lens”,
developed for the CPS, concludes that Nepal’s progress on
poverty reduction has been commendable, yet a significant
share of the population remains clustered around the
poverty line. It confirms the need for WBG support to focus
on removing Nepal’s binding growth constraints to allow
for higher income levels. In this context the International
Development Association (IDA), the International Finance
Corporation (IFC) and the Multilateral Investment Guarantee
Agency (MIGA) will collaborate to make maximum use of their
joint comparative advantage. WBG efforts will be organized
within two pillars. Under pillar 1, the WBG will support
increasing economic growth and competitiveness, and
will focus on expanding hydroelectric power generation,
enhancing transport connectivity, and improving the
business environment. Under pillar 2, the WBG will provide
support to increasing inclusive growth and opportunities
for shared prosperity, aiming to enhance the productivity
of agriculture and equalize access to health care, skills
development and social protection. Cutting across these
pillars, WBG activities will contribute to improving the
effectiveness, efficiency and accountability of public
expenditure.
vi. WBG support will be guided by the principles of
balancing risks and rewards, selectivity and flexibility.
In a shift from more cautious approaches taken in past
strategies, the WBG will engage in larger programs that
6
ExEcutivESummarY
FY2014-2018
Country Partnership Strategyfor Nepal
7FY2014-2018
Country Partnership Strategyfor Nepal
strive for nation-wide impact. Regarding selectivity, this
strategy consolidates the WBG’s engagement into fewer
sectors, where the Group has a comparative advantage
and can leverage its financing and analytical resources for
greater development impact. In addition, the WBG will
maintain programming flexibility, given the politically-
fragile country environment.
vii. The WBG’s engagement in Nepal will continue
to face significant risks that could affect strategy
implementation. Given the challenges of developing
hydropower potential in particular, the overall risk rating is
high—as well as the potential rewards. Among the most
significant risks are political instability that can impact
economic performance, weak governance and increased
corruption and fiduciary risks, and low capacity for program
implementation, including for assessing and mitigating
environment and social impacts. Specific mitigation
measures have been devised to prevent these risks
from impacting CPS implementation and to deal
with them once they occur. These include, among
others, a more active cross-party engagement and
communication to build all-party consensus on
development needs; addressing both ex ante and
ex post dimensions of public resource use through
public financial management activities; increased
focus on safeguards during preparation and
implementation support through capacity building,
training and study tour programs for key officials
involved in safeguard work; and in hydropower
in particular, taking a more holistic approach that
focuses on the necessary governance, policy and
institutional frameworks and strengthening the
synergies between IDA, IFC and MIGA.
7FY2014-2018
Country Partnership Strategyfor Nepal
8
ExEcutivESummary
Fy2014-2018
Country Partnership Strategyfor Nepal
Coun
try
goal
s1 + C
onst
rain
ts/o
ppor
tuni
ties
to
war
d pr
ogre
ss o
n W
BG g
oals
2
Indi
cati
ve C
PS O
utco
mes
and
Indi
cato
rs
Targ
ets
= FY
18 u
nles
s sp
ecifi
edIn
dica
tive
Mile
ston
esO
ngoi
ng a
nd In
dica
tive
WBG
Pro
gram
Pilla
r 1: I
ncre
asin
g ec
onom
ic g
row
th a
nd c
ompe
titi
vene
ss
Coun
try
Goa
ls:
Ass
ist i
n ec
onom
ic p
rogr
ess
and
soci
al
deve
lopm
ent b
y de
velo
ping
mod
ern
ener
gy
thro
ugh
the
prod
uctio
n an
d di
strib
utio
n of
hy
drop
ower
.
Cons
trai
nts/
Opp
ortu
niti
es:
Lack
of e
nerg
y m
ain
cons
trai
nt to
boo
st
com
petit
iven
ess
and
grow
th a
s pr
ereq
uisi
te
for f
urth
er re
duci
ng p
over
ty.
Hig
h le
vels
of l
oad-
shed
ding
and
nee
d to
reha
bilit
ate
and
add
new
gen
erat
ion
capa
city
as
wel
l as
impo
rtin
g po
wer
ove
r the
m
ediu
m-t
erm
.
Nee
d fo
r inc
reas
ed tr
ansm
issi
on a
nd
dist
ribut
ion
both
to im
prov
e ac
cess
with
in
Nep
al a
nd to
link
with
Indi
a fo
r im
port
and
ev
entu
al e
xpor
t of p
ower
.
Hig
h hy
drop
ower
pot
entia
l, bu
t low
pow
er
gene
ratio
n ca
paci
ty, l
ow s
uppl
y an
d lo
w
relia
bilit
y.
Out
com
e 1.
1: In
crea
sed
supp
ly o
f ele
ctri
city
, inc
ludi
ng
impo
rt, a
nd im
prov
ed a
cces
s to
relia
ble
and
affor
dabl
e el
ectr
icit
y w
ithi
n N
epal
Indi
cato
r 1: P
ower
Gen
erat
ion
Capa
city
add
ed o
r re
habi
litat
ed (M
W)
Loca
l Cap
acit
y:
Ba
selin
e:
0 M
W (a
dded
or
reha
bilit
ated
; 201
4)
Pow
er Im
port
s:
Ba
selin
e:
100
MW
Targ
et:
144
MW
reha
bilit
ated
and
at
leas
t 20
MW
new
cap
acity
Targ
et:
250
MW
cum
ulat
ive
pow
er
impo
rt fr
om In
dia
by e
nd-
2017
Sour
ce: P
roje
ct D
ata
(Ban
k an
d IF
C)
Indi
cato
r 2: L
engt
h of
tran
smis
sion
and
dis
trib
utio
n sy
stem
add
ed o
r reh
abili
tate
d
Base
line:
0
km (n
ew o
r reh
abili
tate
d;
2014
)
Targ
et:
600
km n
ew a
nd
reha
bilit
ated
Sour
ce: G
oN; P
roje
ct D
ata
Mile
ston
e: G
ener
atio
n - (
i) Pr
ocur
emen
t for
turb
ine
and
mai
n va
lve
reha
bilit
atio
n co
mpl
eted
by
Dec
embe
r 20
14; (
ii) P
rocu
rem
ent f
or
EPC
cont
ract
for 2
0 M
W g
rid-
conn
ecte
d so
lar p
roje
ct b
y D
ecem
ber 2
014.
Mile
ston
e: T
rans
mis
sion
- pr
ocur
emen
t for
all
subs
tatio
ns,
tran
sfor
mer
s an
d co
nduc
tors
co
mpl
eted
by
Dec
embe
r 201
4.
Mile
ston
e: S
ucce
ssfu
l co
mm
itmen
t of 2
IFC
inve
stm
ents
by
end
of C
Y201
5.
Ong
oing
Fin
anci
ng:
(i) K
abel
i-A T
rans
mis
sion
Pro
ject
; (ii
) Nep
al-In
dia
Elec
tric
ity T
rade
and
Tr
ansm
issi
on P
roje
ct (I
DA
);
(iii)
Kali
Gan
daki
Hyd
ropo
wer
Reh
abili
tatio
n Pr
ojec
t
Indi
cati
ve F
inan
cing
: (i)
IFC
Inve
stm
ents
in A
ndhi
khol
a, U
pper
Tr
ishu
li an
d Ka
beli
proj
ects
;(ii
) IFC
& S
REP
term
loan
for b
anks
for s
mal
l hy
drop
ower
pro
ject
s (<
=10
MW
) fina
ncin
g;
(iii)
Grid
Sol
ar a
nd E
nerg
y Effi
cien
cy P
roje
ct;
(iv) H
ydro
pow
er P
roje
ct o
r PRG
; (v
) Sca
ling-
up R
enew
able
Ene
rgy
Proj
ect
(TF)
; (v
) Ene
rgy
DPO
; (v
i) In
vest
men
t for
the
Indo
Nep
al P
ower
( ID
A);
(vii)
IDA
/IFC
Kabe
li A
Hyd
ropo
wer
Pro
ject
.
Ong
oing
AA
A/O
ther
s:
(i) Te
chni
cal A
ssis
tanc
e fo
r hyd
ropo
wer
pr
ojec
t pre
para
tion
and
sect
or re
form
;
(ii) H
ydro
pow
er D
ialo
gue.
Coun
try
Goa
ls:
Expa
nd a
sus
tain
able
and
saf
e tr
ansp
ort
netw
ork
that
con
trib
utes
tow
ards
nat
iona
l so
cioe
cono
mic
inte
grat
ion,
regi
onal
bal
ance
an
d de
velo
pmen
t.
Enha
nce
the
oppo
rtun
ities
of i
ncom
e an
d em
ploy
men
t by
prom
otin
g do
mes
tic a
nd
inte
rnat
iona
l tra
de.
Cons
trai
nts/
Opp
ortu
niti
es:
Low
est r
oad
dens
ity in
Sou
th A
sia
with
one
th
ird o
f hill
resi
dent
s liv
ing
mor
e th
an 4
ho
urs
from
an
all-s
easo
n ro
ad.
Nee
d to
exp
and
regi
onal
tran
spor
tatio
n co
nnec
tivity
and
trad
e w
ith In
dia
and
pote
ntia
lly C
hina
.
Out
com
e 1.
2: Im
prov
ed tr
ansp
orta
tion
con
nect
ivit
y,
inte
rnal
ly a
nd w
ith
Indi
a
Indi
cato
r 1: N
umbe
r of d
istr
ict h
eadq
uart
ers
conn
ecte
d w
ith a
ll-se
ason
road
s D
P
Base
line:
59
Targ
et:
65So
urce
: GoN
and
Pro
ject
Dat
a
Indi
cato
r 2: A
vera
ge ti
me
from
shi
p re
adin
ess
to u
nloa
d to
fina
l des
tinat
ion
for a
n im
port
ed c
onta
iner
, on
Kolk
ata-
Birg
unj-K
athm
andu
Cor
ridor
(day
s)
Base
line:
22
day
sTa
rget
: 18
Sour
ce: P
roje
ct D
ata
Mile
ston
e: A
ll ro
ad
cons
truc
tion
cont
ract
s pr
ocur
ed b
y 20
16
Mile
ston
e: A
ll ro
ad u
p-gr
adin
g co
ntra
cts
proc
ured
by
2016
Ong
oing
Fin
anci
ng:
(i) B
ridge
s Im
prov
emen
t and
Mai
nten
ance
Pr
ogra
m;
(ii) R
oad
Sect
or D
evel
opm
ent P
roje
ct;
(iii)
Nep
al In
dia
Elec
tric
ity T
rade
and
Tr
ansm
issi
on P
roje
ct;
(iv) N
epal
-Indi
a Tr
ade
and
Tran
spor
t Pro
ject
; (v
) Rur
al T
rans
port
Pro
ject
.
Indi
cati
ve F
inan
cing
: (i)
Nep
al F
ast T
rack
; (ii
) Str
ateg
ic R
oad
Net
wor
k Pr
ojec
t.
Ong
oing
AA
A/O
ther
s:
(i) F
ast T
rack
Stu
dies
; (ii
) Fas
t Tra
ck TA
.
Resu
lts F
ram
ewor
k fo
r the
Nep
al C
PS F
Y14
-FY
18
1.
App
roac
h pa
per t
o th
e 20
13/1
4-20
15/1
6 D
evel
opm
ent P
lan
(tra
nsla
ted
from
Nep
ali o
rigin
al).
2.
End
extr
eme
pove
rty
and
prom
ote
shar
ed p
rosp
erity
.
ExEcutivESummarY
9FY2014-2018
Country Partnership Strategyfor Nepal
Coun
try
Goa
ls:
Ensu
re fi
nanc
ial s
ecto
r sta
bilit
y th
roug
h ba
lanc
ed m
onet
ary,
fore
ign
exch
ange
and
fin
anci
al s
ecto
r pol
ices
.
Crea
te e
nabl
ing
envi
ronm
ent t
o im
prov
e ac
cess
to b
anki
ng a
nd u
se o
f ava
ilabl
e fin
anci
al m
eans
lead
ing
to a
ccel
erat
ed
econ
omic
act
ivity
.
Incr
ease
fore
ign
inve
stm
ent b
y pr
omot
ing
a fo
reig
n in
vest
men
t frie
ndly
env
ironm
ent f
or
the
deve
lopm
ent o
f prio
rity
sect
ors.
Cons
trai
nts/
Opp
ortu
niti
es:
Inst
abili
ty in
the
finan
cial
sec
tor,
incl
udin
g ris
ks o
f ins
olve
ncy
of s
tate
-ow
ned
bank
s an
d lo
w le
vels
of c
apita
lizat
ion.
Low
leve
ls o
f priv
ate
inve
stm
ent,
incl
udin
g co
mpl
ianc
e co
st s
avin
gs in
clim
ate
inte
rven
tions
. Low
acc
ess
to fi
nanc
e.
Out
com
e 1.
3: I
ncre
ased
fina
ncia
l sec
tor s
tabi
lity
and
impr
oved
env
iron
men
t for
pri
vate
sec
tor i
nves
tmen
t
Indi
cato
r 1: S
tate
-ow
ned
bank
s (N
BL a
nd R
BB)
reca
pita
lized
as
per p
rude
ntia
l nor
ms
and
NBL
priv
atiz
ed
Base
line:
Ca
pita
l Ade
quac
y Ra
tio
(FY1
3):
NBL
: -0.
49%
RB
B: 3
.33%
GoN
ow
ners
hip
of N
BL: 3
0%
Targ
et:
10%
CA
R fo
r eac
h on
e
GoN
ow
ners
hip
of N
BL: 0
%So
urce
: NRB
and
GoN
Indi
cato
r 2: T
he N
RB p
rogr
am o
f spe
cial
insp
ectio
ns h
as b
een
com
plet
ed a
nd a
ll un
derc
apita
lized
inst
itutio
ns h
ave
been
ei
ther
reso
lved
or a
re u
nder
form
al P
rom
pt C
orre
ctiv
e Ac
tion.
Base
line:
N
o in
spec
tions
Targ
et:
50%
of a
sset
s of
Cla
ss A
ba
nks
Sour
ce: N
RB a
nd p
roje
ct d
ata
Indi
cato
r 3: A
mou
nt o
f new
priv
ate
inve
stm
ent m
obili
zed
in
prio
rity
sect
ors
Base
line:
0Ta
rget
: $10
0mSo
urce
: IFC
Indi
cato
r 4: C
ompl
ianc
e co
st s
avin
gs o
f inv
estm
ent i
n cl
imat
e in
terv
entio
ns
Base
line:
0
Targ
et:
$18.
5mSo
urce
: IFC
Indi
cato
r 5: A
cces
s to
fina
nce:
Impr
oved
acc
ess
to fi
nanc
e -
to b
e m
easu
red
by n
umbe
r of b
enefi
ciar
ies
(indi
vidu
als
and
SMEs
, dis
aggr
egat
ed b
y ge
nder
)
Base
line:
SM
Es: 4
3,90
0 (5
,268
fem
ale
owne
d); I
ndiv
idua
ls: 2
.3 m
illio
n (o
f whi
ch 1
.5 m
illio
n fe
mal
e)
Targ
et:
SMEs
: 51,
300
(6,3
00 fe
mal
e-ow
ned)
; Ind
ivid
uals
: 2.5
m
illio
n (o
f whi
ch 1
.6 m
illio
n fe
mal
e)So
urce
: IFC
Mile
ston
e: T
he s
tren
gthe
ned
lega
l fra
mew
ork
for e
ffect
ive
bank
re
solu
tion
has
been
ena
cted
and
co
nflic
ts b
etw
een
the
NRB
Act
and
BA
FIA
hav
e be
en re
mov
ed
Mile
ston
e: T
he le
gal f
ram
ewor
k fo
r dep
osit
insu
ranc
e ha
s be
en e
nact
ed a
nd D
CGT
has
oper
atio
naliz
ed th
e Ac
t by
deve
lopi
ng a
dequ
ate
oper
atin
g ca
paci
ty a
nd b
y is
suin
g en
ablin
g re
gula
tions
and
byl
aws
Mile
ston
e: 1
0 IF
C le
d te
chni
cal
advi
sory
and
/or P
PP p
roje
cts
by
2015
Mile
ston
e: 4
IFC
led
inve
stm
ent
proj
ects
by
2015
Ong
oing
Fin
anci
ng:
(i) IF
C fa
cilit
ated
syn
di-c
atio
n an
d sp
onso
r eq
uity
inve
stm
ent i
n in
dica
tive
500M
W
hydr
o pr
ojec
t;
(ii) S
EDF:
Inve
stm
ent C
limat
e fo
r Ind
ustr
y (IF
C);
(iii)
Acce
ss to
fina
nce
in S
ME
Vent
ures
and
Po
ultr
y (IF
C);
(iv) F
inan
cial
Sec
tor D
PC;
(iv
) IFC
equ
ity a
nd d
ebt s
uppo
rt to
in
fras
truc
ture
com
pani
es, M
FIs
and
FIs.
Indi
cati
ve F
inan
cing
:(i)
IFC
Inve
stm
ents
in A
ndhi
khol
a, U
pper
Tr
ishu
li 1,
Join
t Dev
elop
men
t Agr
eem
ent f
or
Upp
er M
arsy
angd
i and
, and
Kab
eli p
ower
pr
ojec
ts;
(ii) I
FC’s
supp
ort t
o to
uris
m b
y in
vest
ing
in
hote
l pro
ject
s;
(iii)
Seco
nd F
inan
cial
Sec
tor D
PC.
Ong
oing
AA
A:
(i) C
ompe
titiv
e In
dust
ries
Stud
y;(ii
) IFC
Nep
al In
vest
men
t Clim
ate
Refo
rm
Prog
ram
(SED
F);
(iii)
IFC
advi
sory
with
exi
stin
g cl
ient
s in
N
irdha
n an
d RM
DC
(FM
+A2F
);
(v) I
FC p
aym
ents
pro
ject
s;
(vi)
IFC
PPP
tran
sact
ion
advi
sory
to G
oN;
(vi)
Fina
ncia
l Sec
tor A
sses
smen
t Pro
gram
(F
SAP)
; (v
ii) F
inan
cial
Sec
tor D
evel
opm
ent S
trat
egy
(TA
); (v
iii) A
griF
inan
ce a
dvis
ory
to N
irdha
n (T
F);
(ix) I
FC’s
Sout
h A
sia
Regi
onal
Inte
grat
ion
in T
rade
and
Inve
stm
ent (
SART
I) Po
licy
Prog
ram
; (x
) IFC
SM
E Ba
nkin
g an
d Fi
nanc
ial
Infr
astr
uctu
re P
roje
cts.
10
ExEcutivESummary
Fy2014-2018
Country Partnership Strategyfor Nepal
Pilla
r 2: I
ncre
asin
g in
clus
ive
grow
th a
nd o
ppor
tuni
ties
for p
rosp
erit
y
Coun
try
Goa
ls:
To im
prov
e ec
onom
ic s
tatu
s of
rura
l pe
ople
by
incr
easi
ng th
e pr
oduc
tion
and
prod
uctiv
ity o
f agr
icul
ture
and
live
stoc
k co
mm
oditi
es in
line
with
the
requ
irem
ents
of
farm
ers
and
othe
r sta
keho
lder
s.
To in
crea
se a
gric
ultu
ral p
rodu
ctio
n an
d pr
oduc
tivity
thro
ugh
effici
ent,
sust
aina
ble,
eff
ectiv
e an
d re
liabl
e irr
igat
ion
syst
em fo
r pr
ovid
ing
irrig
atio
n fa
cilit
y to
the
agric
ultu
ral
land
thro
ugho
ut th
e ye
ar
Cons
trai
nts/
Opp
ortu
niti
es:
Agric
ultu
re s
econ
d gr
eate
st s
ourc
e of
val
ue-
adde
d to
the
econ
omy;
larg
est s
ourc
e of
em
ploy
men
t, in
com
e an
d po
vert
y re
duct
ion.
Onl
y 28
per
cent
of N
epal
’s ar
able
land
is
irrig
ated
; mos
t irr
igat
ion
syst
ems
are
farm
er-
man
aged
and
in n
eed
of m
oder
niza
tion
and
reha
bilit
atio
n
Nee
d to
impr
ove
agric
ultu
re p
rodu
ctiv
ity
for m
arke
tabl
e co
mm
oditi
es a
nd in
crea
se
inte
grat
ion
of s
mal
lhol
ders
in v
alue
cha
ins
for n
on-t
radi
tiona
l hig
her v
alue
com
mod
ities
(m
arke
t-or
ient
ed s
mal
lhol
der p
rodu
ctio
n) to
im
prov
e ru
ral i
ncom
es.
Out
com
e 2.
1 In
crea
sed
agri
cult
ural
pro
duct
ivit
y an
d co
mm
erci
aliz
atio
n In
dica
tor 1
: Pro
duct
ivity
of p
riorit
y hi
gh v
alue
co
mm
oditi
es
Base
line:
To
mat
o : 8
4t/h
a
M
ilk :
978
ltr/y
ear,c
ow
Su
garc
ane:
39.
5t/h
aPo
ultr
y FC
R: 2
.1:1
Targ
et:
110t
/ha
2,25
0 ltr
/yea
r,cow
47
t/ha
(IFC
)1.
9:1
(IFC)
Sou
rce:
Pro
ject
Dat
a (P
ACT
and
NPS
CSP)
Indi
cato
r 2: P
erce
ntag
e in
crea
se in
the
crop
ping
inte
nsity
Base
line:
Cr
oppi
ng in
tens
ity: 1
.68
Ta
rget
: 2.
20 S
ourc
e: P
roje
ct D
ata
(IWRM
P)
Indi
cato
r 3: A
rea
unde
r irr
igat
ion
farm
ing
Base
line:
Irr
igat
ed a
rea:
15,
817
ha
Targ
et:
26,8
00 h
a S
ourc
e: P
roje
ct D
ata
(IWRM
P)
Indi
cato
r 4: A
nnua
l sm
allh
olde
r pro
duct
ion
mar
kete
d
Base
line:
G
inge
r: 2,
288
mt/
year
Milk
: 5,1
22,2
60 lt
r/ye
ar
Targ
et:
2,32
4 m
t/ye
ar5,
170,
520
ltr/y
ear
Sou
rce:
Pro
ject
Dat
a (P
ACT)
Mile
ston
e: In
crea
se in
pr
oduc
tion
of to
mat
oes
and
milk
by
8%, 3
2% re
spec
tivel
y;
FCR
redu
ctio
n fo
r pou
ltry
by 0
.2
(201
6).
Mile
ston
e: In
crea
sed
crop
ping
in
tens
ity b
y at
leas
t 1.9
0%
(201
6).
Mile
ston
e: In
crea
sed
tota
l are
a irr
igat
ed to
at l
east
18,
000
ha
(201
6).
Mile
ston
e: In
crea
sed
volu
me
of
ging
er m
arke
ted
by s
mal
lhol
der
farm
ers
by 2
5mt/
year
(min
. 0.5
%
per y
ear;
2016
).
Ong
oing
Fin
anci
ng:
(i) P
roje
ct fo
r Agr
icul
ture
Co
mm
erci
aliz
atio
n an
d Tr
ade
(PAC
T);
(ii
) Mod
erni
zatio
n of
Ran
i, Ja
mar
a, K
ular
iya
Irrig
atio
n Pr
ojec
t (RJ
K);
(iii)
Nep
al Z
oono
ses
Cont
rol P
roje
ct (T
F);
(iv) I
rrig
atio
n an
d W
ater
Res
ourc
e M
anag
emen
t Pro
ject
(IW
RMP)
;
(v) N
epal
Agr
icul
ture
Foo
d Se
curit
y Pr
ojec
t (G
AFS
P gr
ant)
; (v
i) N
epal
Pou
ltry
Supp
ly C
hain
St
reng
then
ing
Proj
ect (
IFC)
.
Indi
cati
ve F
inan
cing
: [W
ill b
e de
term
ined
by
the
outc
omes
of
on-g
oing
AA
A]
On-
goin
g A
AA
:So
urce
s of
Gro
wth
in A
gric
ultu
re
Indi
cati
ve A
AA
:St
reng
then
ing
the
Poul
try
Valu
e Ch
ain
(IFC)
Coun
try
Goa
ls:
To p
rovi
de o
ppor
tuni
ties
for l
itera
cy a
nd
cont
inuo
us e
duca
tion
to a
ll N
epal
ese,
pa
rtic
ular
ly to
wom
en a
nd p
eopl
e fr
om
poor
com
mun
ities
by
linki
ng li
tera
cy w
ith
way
of l
ife a
nd b
y es
tabl
ishi
ng in
ter-
linka
ges
betw
een
skill
s an
d w
ork.
Cr
eate
skill
s and
voc
atio
nal t
rain
ing
oppo
rtun
ities
to c
reat
e hu
man
reso
urce
abl
e to
com
pete
bot
h na
tiona
lly a
nd in
tern
atio
nally
.
Cons
trai
nts/
Opp
ortu
niti
es:
Low
leve
ls o
f acc
ess a
cros
s to
post
-bas
ic
(sec
onda
ry a
nd te
rtia
ry) e
duca
tion
acro
ss
inco
me
grou
ps a
nd g
ende
r. Co
nsid
erab
le
wag
e pr
emiu
ms f
or h
ighe
r lev
els o
f edu
catio
n in
Nep
al a
s wel
l as f
or m
igra
nt w
orke
rs. L
ow
leve
ls o
f em
ploy
abili
ty a
nd n
eed
for t
rain
ing
to b
e m
ore
empl
oym
ent f
ocus
ed.
Out
com
e 2.
2: M
ore
equi
tabl
e ac
cess
to e
duca
tion
and
sk
ills
deve
lopm
ent,
of h
ighe
r qua
lity
and
rele
vanc
eIn
dica
tor 1
: Enr
ollm
ent r
ate
(NER
) in
seco
ndar
y ed
ucat
ion
(by
gend
er a
nd in
com
e qu
intil
e)
Base
line:
M
ale:
30.
9%
Fem
ale:
30.
3%
Poor
est Q
uint
ile3 : 1
7.7%
Se
cond
Poo
rest
: 25.
9%
Targ
et:
Mal
e: 3
4%
Fem
ale:
33.
5%
Poor
est Q
uint
ile: 2
2.5%
Se
cond
Poo
rest
: 25.
9%So
urce
: GoN
(NLS
S if
avai
labl
e)
Indi
cato
r 2: N
umbe
r of s
tude
nts
grad
uatin
g an
nual
ly fr
om
tert
iary
acc
redi
ted
inst
itutio
ns
Base
line:
2,0
00Ta
rget
: 5,0
00So
urce
: GoN
In
dica
tor 3
: Per
cent
age
of g
radu
ates
from
sup
port
ed
prog
ram
s ga
infu
lly4 e
mpl
oyed
at l
east
for s
ix m
onth
s af
ter
com
plet
ion
of th
e sh
ort t
erm
trai
ning
Base
line:
68%
Targ
et: 7
0%So
urce
: GoN
Mile
ston
e: 1
2,00
0 (3
,000
per
ye
ar) p
oor s
tude
nts
at s
econ
dary
an
d te
rtia
ry le
vels
rece
ivin
g sc
hola
rshi
ps fr
om 2
014
to 2
017
So
urce
: GoN
Mile
ston
e: (b
y m
id-t
erm
) N
ER
Mal
e:33
.5%
Fe
mal
e: 3
3.0%
So
urce
: GoN
Mile
ston
e: 3
,500
stu
dent
s gr
adua
ting
from
acc
redi
ted
HE
inst
itutio
ns; 1
5 in
stitu
tions
ar
e ac
cred
ited;
45,
000
pers
ons
trai
ned
Ong
oing
Fin
anci
ng:
(i) S
choo
l Sec
tor R
efor
m P
rogr
am (S
SRP;
ed
ucat
ion
SWA
p);
(ii) P
ro-p
oor T
arge
ted
Stip
end
Proj
ect (
TF);
(ii
i) En
hanc
ed V
ocat
iona
l Edu
catio
n an
d Tr
aini
ng P
roje
ct;
(iv) S
econ
d H
ighe
r Edu
catio
n Pr
ojec
t. O
ngoi
ng A
AA
: (i)
Nep
al E
duca
tion
Stud
ies;
(ii
) Im
pact
Eva
luat
ion
of s
hort
-ter
m
trai
ning
. In
dica
tive
Fin
anci
ng:
(i) H
ighe
r Edu
catio
n Re
form
s Pr
ojec
t;
(ii) S
kills
Dev
elop
men
t Pro
ject
.
Indi
cati
ve A
AA
: (i)
Eva
luat
ion
of d
iffer
ent m
odal
ities
of
enha
ncin
g ea
rly g
rade
read
ing
skill
s;
(ii) S
kills
Dev
elop
men
t Stu
dy;
(iii)
Educ
atio
n Se
ctor
Rev
iew
.
3.
NER
will
be
base
d on
EM
IS, w
here
as N
ER o
f poo
rest
Qs
is b
ased
on
NLS
S da
ta.
4.
Gai
nful
ly e
mpl
oyed
mea
ns th
at a
gra
duat
e ea
rns
at le
ast N
Rs 2
7,60
0 (N
Rs 4
,600
per
mon
th o
n av
erag
e) fr
om th
e jo
b (o
r sel
f-em
ploy
men
t) th
at is
dire
ctly
rela
ted
to th
e tr
aini
ng re
ceiv
ed b
y th
e gr
adua
tes.
The
grad
uate
mus
t ha
ve b
een
plac
ed in
em
ploy
men
t with
in tw
o m
onth
s of
com
plet
ion
of th
e tr
aini
ng.
ExEcutivESummarY
11FY2014-2018
Country Partnership Strategyfor Nepal
Coun
try
Goa
ls:
To in
crea
se e
quita
ble
acce
ss a
nd q
ualit
y of
he
alth
, edu
catio
n an
d w
ater
sup
ply
serv
ices
to
all
citiz
ens,
espe
cial
ly th
e m
argi
naliz
ed
popu
latio
n gr
oups
.
To in
crea
se e
quita
ble
acce
ss to
and
qua
lity
basi
c- h
ealth
car
e se
rvic
es.
Prov
ide
basi
c dr
inki
ng w
ater
and
san
itatio
n fa
cilit
ies
to a
ll ci
tizen
s of
Nep
al. R
each
un
iver
sal a
cces
s to
wat
er a
nd s
anita
tion
by
2017
.
Cons
trai
nts/
Opp
ortu
niti
es:
Low
birt
h at
tend
ance
in h
ealth
faci
litie
s/ b
y sk
illed
per
sona
l for
the
poor
est q
uint
iles.
Low
pro
gres
s in
redu
cing
hun
ger a
nd
impr
ovin
g nu
triti
on; h
igh
prev
alen
ce o
f poo
r in
fant
and
chi
ld fe
edin
g pr
actic
es.
Hig
h ou
t-of
poc
ket e
xpen
ditu
res
for h
ealth
an
d lo
w e
nrol
lmen
t in
heal
th in
sura
nce.
85 p
erce
nt w
ater
acc
ess
in ru
ral a
reas
and
55
per
cent
san
itatio
n ac
cess
. Hig
h ne
ed
for r
epai
rs o
f exi
stin
g ru
ral w
ater
sys
tem
s. A
bout
5.5
mill
ion
peop
le s
uffer
from
in
adeq
uate
wat
er s
ervi
ce a
nd 1
6 m
illio
n fr
om in
adeq
uate
san
itatio
n fa
cilit
ies.
Out
com
e 2.
3: Im
prov
ed h
ealt
h an
d nu
trit
ion
outc
omes
, par
ticu
larl
y fo
r the
poo
r and
dis
adva
ntag
ed
Indi
cato
r 1: P
erce
ntag
e of
birt
hs d
eliv
ered
by
skill
ed b
irth
atte
ndan
ts in
the
poor
est t
wo
quin
tiles
Base
line:
Lo
wes
t 10.
7%
2nd L
owes
t 23.
7 %
Targ
et:
Lo
wes
t 20%
2nd
low
est 3
0%So
urce
: Pro
ject
Dat
a; D
HS
data
Indi
cato
r 2: P
erce
ntag
e of
chi
ldre
n 6-
24 m
onth
s of
age
who
co
nsum
e a
min
imum
acc
epta
ble
diet
in th
e m
ost d
isad
vant
aged
VD
Cs o
f the
15
proj
ect d
istr
icts
Base
line:
11
.8Ta
rget
: 25
So
urce
: Pro
ject
Dat
a
Indi
cato
r 3: P
ropo
rtio
n of
peo
ple
in a
dis
tric
t enr
olle
d in
hea
lth
insu
ranc
e
Base
line:
0
Targ
et:
10%
Sour
ce: P
roje
ct D
ata
Indi
cato
r 4: N
ew h
ouse
hold
s w
ith a
cces
s to
saf
e dr
inki
ng w
ater
, ne
w V
illag
e D
evel
opm
ent C
omm
ittee
s (V
DCs
) tha
t are
ope
n de
feca
tion
free
(OD
F) a
nd n
ew p
ublic
latr
ines
Base
line:
D
rinki
ng w
ater
: 0 (2
014;
pro
ject
ar
ea o
nly)
Sani
tatio
n: 0
VD
Cs (2
014;
pr
ojec
t are
a on
ly)
Publ
ic la
trin
es: 0
(201
4; p
roje
ct
area
onl
y)
Targ
et:
Drin
king
wat
er: 1
77,0
00 n
ew
hous
ehol
ds (2
017)
Sani
tatio
n: 2
40 n
ew V
DCs
or
abou
t new
116
,000
hou
seho
lds
(201
7)
New
pub
lic la
trin
es: 6
00So
urce
: RW
SSP3
pro
ject
dat
a
Mile
ston
e: A
t lea
st 5
00 S
kill
Birt
h A
tten
dant
s tr
aini
ng to
doc
tors
/nu
rse/
mid
-wiv
es c
ompl
eted
eve
ry
year
Mile
ston
e: a
t lea
st 2
00
disa
dvan
tage
d VD
Cs h
ave
the
nutr
ition
pro
ject
Mile
ston
e: Im
pact
Eva
luat
ion
of H
ealth
Insu
ranc
e co
mpl
eted
Mile
ston
e: P
eopl
e tr
aine
d on
im
prov
ed h
ygie
ne b
ehav
ior
and
sani
tatio
n pr
actic
es fr
om
zero
(201
4) to
0.3
mill
ion
(201
5) a
nd 1
.6 m
illio
n (2
017)
Ong
oing
Fin
anci
ng:
(i) S
econ
d H
NP
and
HIV
/AID
S Pr
ojec
t (h
ealth
SW
Ap)
; (ii
) Com
mun
ity A
ctio
n fo
r Nut
ritio
n Pr
ojec
t.
Ong
oing
AA
A:
(i) F
ood
Secu
rity
and
Nut
ritio
n Th
emat
ic
Repo
rt;
(ii) C
apac
ity A
sses
smen
t of C
omm
unity
W
orke
rs to
Impl
emen
t Prio
rity
Nut
ritio
n Ac
tions
in N
epal
; (ii
i) D
istr
ict P
rofil
es o
f Det
erm
inan
ts o
f M
alnu
triti
on in
Nep
al;
(iv) R
evie
w o
f Beh
avio
r Cha
nge
for
Infa
nt a
nd Y
oung
Chi
ld F
eedi
ng (I
YCF)
In
terv
entio
ns in
Nep
al;
(v) P
repa
ratio
n of
a s
trat
egic
co
mm
unic
atio
ns p
lan
to ra
ise
awar
enes
s an
d in
crea
se c
omm
itmen
t fo
r act
ion
agai
nst f
ood
and
nutr
ition
in
secu
rity
in N
epal
; (v
i) N
epal
Rur
al W
ater
Sup
ply
and
Sani
tatio
n Se
ctor
-Iden
tifica
tion
of
Opt
ions
to In
crea
se S
usta
inab
le A
cces
s to
Ser
vice
s.
Indi
cati
ve F
inan
cing
: (i)
Thi
rd R
ural
Wat
er S
uppl
y an
d Sa
nita
tion
Proj
ect;
(ii) T
hird
Nep
al H
ealth
Sec
tor P
rogr
am.
12
ExEcutivESummary
Fy2014-2018
Country Partnership Strategyfor Nepal
Coun
try
Goa
ls:
To e
nabl
e ec
onom
ical
ly v
ulne
rabl
e an
d so
cial
ly
excl
uded
mar
gina
lized
indi
vidu
als,
grou
ps a
nd
com
mun
ities
to c
ope
and
man
age
risks
and
vu
lner
abili
ties
by p
rovi
ding
them
min
imum
le
vel o
f soc
ial p
rote
ctio
n.
Cons
trai
nts/
Opp
ortu
niti
es:
Cont
inue
d hi
gh v
ulne
rabi
lity
of
mar
gina
lized
hou
seho
lds,
incl
udin
g la
ck
of a
vaila
bilit
y of
pro
duct
ive
asse
ts.
Out
com
e 2.
4: Im
prov
ed s
ocia
l pro
tect
ion
Indi
cato
r 1:
Num
ber o
f m
argi
naliz
ed h
ouse
hold
su
ppor
ted
with
pro
duct
ive
asse
ts
Base
line:
41
6,71
25
Targ
et:
575,
0006
Sour
ce: P
AF-II
Indi
cato
r 2: P
erce
ntag
e of
vul
nera
ble
peop
le b
enefi
ting
from
saf
ety
net p
rogr
ams7
Base
line:
42%
of p
oor r
ecei
ve S
A
Targ
et: 5
0%
Sour
ce: H
DSP
, SSN
P an
d SP
P
Indi
cato
r 3: N
umbe
r of p
aym
ent a
ccou
nts
open
ed
(dis
aggr
egat
ed b
y ge
nder
)
Base
line:
0 (m
ale
vs. f
emal
e: N
/A)
Targ
et: 1
mn
(of w
hich
0.1
2mn
fem
ale)
Sour
ce: I
FC’s
TA N
epal
Pay
men
ts R
egul
ator
y Re
form
Mile
ston
e: N
umbe
r of G
ende
r an
d So
cial
and
Incl
usio
n (G
ESI)
Stra
tegy
in k
ey m
inis
trie
s m
onito
red
for p
rogr
ess
on
gend
er a
nd in
clus
ion
scor
es.
Mile
ston
e: G
ESI A
naly
sis
of 3
se
ctor
s co
mpl
eted
.
Mile
ston
e: 4
,500
new
PA
F co
mm
unity
org
aniz
atio
ns b
y en
d of
July
201
5.
Mile
ston
e: 6
,120
new
PA
F co
mm
unity
org
aniz
atio
ns b
y en
d of
July
201
6.
Ong
oing
Fin
anci
ng:
(i) E
mer
genc
y Pe
ace
Supp
ort P
roje
ct;
(ii) P
over
ty A
llevi
atio
n Fu
nd II
Pro
ject
(P
AF
II);
(iii)
Soci
al S
afet
y N
ets
Proj
ect;
(iv) H
uman
Dev
elop
men
t and
Soc
ial
Prot
ectio
n Pi
lot (
TF)
Ong
oing
AA
A:
(i) H
uman
Dev
elop
men
t Not
e (b
ased
on
NLS
S da
ta);
(ii
) Gen
der a
nd S
ocia
l Inc
lusi
on
Ass
essm
ent o
f NLS
S;
(iii)
Food
Inse
curit
y Ta
rget
ing;
(iv
) Gen
der a
nd n
utrit
ion
revi
ew o
f pu
blic
wor
ks;
(v) I
FC’s
TA N
epal
Pay
men
ts R
egul
ator
y Re
form
Pro
gram
Indi
cati
ve F
inan
cing
: (i)
Soc
ial S
afet
y N
ets
Syst
ems
Build
ing
Proj
ect.
Indi
cati
ve A
AA
: (i)
Soc
ial P
rote
ctio
n St
udy;
(ii
) Rev
iew
of p
ublic
wor
ks p
rogr
am a
s a
safe
ty n
et;
(iii)
Soci
al P
rote
ctio
n Pr
ogra
mm
atic
A
AA
.
5.
The
figur
e is
bas
ed o
n PA
F’s
Prog
ress
Rep
ort (
as o
f Nov
embe
r 15,
201
2)
6.
This
num
ber i
s ba
sed
on th
e es
timat
es fo
r the
Sec
ond
AF
sugg
estin
g th
at P
AF
will
cov
er a
n ad
ditio
nal 1
53,0
00 h
ouse
hold
s ba
sed
on th
e ad
ditio
nal fi
nanc
ing
of $
80 m
illio
n fo
r the
sec
ond
AF
of P
AF
II. T
he a
dditi
onal
fina
ncin
g w
ill p
rovi
de s
uppo
rt fo
r abo
ut 6
,000
add
ition
al c
omm
unity
org
aniz
atio
ns.
7.
Poor
peo
ple
who
are
ben
efitin
g of
a re
liabl
e an
d ro
bust
saf
ety
nets
pro
gram
whi
ch h
as a
n effi
cien
t del
iver
y m
echa
nism
ExEcutivESummarY
13FY2014-2018
Country Partnership Strategyfor Nepal
IBRD/IDA
Total Disbursed (Active) 730.96
of which has been repaid 0.00
Total Disbursed (Closed) 770.19
of which has been repaid 422.00
Total Disbursed (Active + Closed) 1,501.15
of which has been repaid 422.00
Total Undisbursed (Active) 683.47
Total Undisbursed (Closed) 6.66
Total Undisbursed (Active + Closed) 690.13
As Of Date 4/15/2014
Closed Projects 89
Active Projects Difference BetweenExpected and ActualDisbursements a/
Last ISR Supervision Rating
Project ID
Project Name Development Objectives
Implementa-tion Progress
Fiscal Year
IDA Cancel. Undisb. Orig. Frm Rev’d
P132289 Kali Gandaki Rehab MS MS 2013 27.26 27.84P125495 NP: Bridges Program Support MU MU 2012 60 43.31 9.56P120265 NP: Emerging Towns Project MU MU 2011 25 6.43 10.50 5.74 -1.52P104015 NP: Enhanced Vocational Educ & Trng MS MU 2011 50 10.37 26.57 24.88 -0.00P099296 NP: Irrig & Water Res Mgmt Proj S S 2008 114.3 59.79 -4.73 9.57P112893 NP: Kabeli Transmission Project MU MU 2011 38 27.09 8.51P105860 NP: PAF II S MS 2008 245 0.03 82.04 -62.80 -4.69P110762 NP: Peace Support Project MS MS 2008 50 13.06 0.68 15.33 13.71P118179 NP: Rani Jamara Kulariya Irrigation Proj S MS 2012 43 30.68 11.58P095977 NP: Road Sector Development Project MS MU 2008 117.6 28.49 -46.72 -1.26P113441 NP: School Sector Reform Program MS MS 2010 230 83.16 -32.68 98.65P090967 NP: Second Higher Education Project MS MS 2007 60 9.50 7.68 1.43P117417 NP: Second HNP and HIV/AIDS Project S MS 2010 129.15 57.16 30.34P113002 NP: Social Safety Nets Project S MS 2009 64.47 5.18 7.81 -30.67 12.13P087140 NP:Agriculture Commercialization & Trade S MS 2009 60 50.75 8.50P125359 NP:Community Actionfor Nutrition Project MU MU 2012 40 37.68 2.63P132750 SNRTP S S 2014 100 100.42 0.67
Overall Result 1453.78 35.07 683.47 -52.17 128.02
Regional Projects with Nepal ComponentsProject ID
Project Name Development Objectives
Implementa-tion Progress
Fiscal Year
IDA Cancel. Undisb. Orig. Frm Rev’d
P144335 Nepal-India Reg Trade & Transport Prj S S 2013 99 93.2 -6.0 186.1P121210 REG: Wildlife Protection: BD and NP MS MU 2011 39 31.3 20.3 90.6P115767 REG:Northeast Regional Electr. Transmiss MS MS 2011 138 122.6 64.3 324.9
Overall Result 276 247.0 78.5 602
IDA Operations Portfolio
14
ExEcutivESummary
Fy2014-2018
Country Partnership Strategyfor Nepal
(As
of M
arch
31,
201
4)
S.
No.
Proj
ect
IDTr
ust F
und
Num
ber
Proj
ect
Effec
tive
D
ate
Clos
ing
Dat
eN
et C
omm
it.
Am
ount
Dis
b.
FY14
Tota
l Cum
. D
isb.
% D
isb.
Und
isb.
Ba
lanc
e1
P090
038
TF 5
6440
Nep
al -
Biog
as P
rogr
am3-
May
-06
31-J
ul-1
57.
00
1.57
3.
55
50.7
3%3.
45
2P0
9597
8TF
902
64N
epal
- Vi
llage
Mic
ro H
ydro
30-J
un-0
715
-Dec
-15
1.96
0.
00
0.00
0.
00%
1.96
3
P090
967
TF 9
3397
Japa
n So
cial
Dev
elop
men
t Fun
d G
rant
for P
ro-p
oor T
arge
ted
Seco
ndar
y Sc
hool
St
ipen
d Pr
ojec
t (C)
2-
Jan-
0915
-Jan
-14
1.90
0.
18
1.58
82
.87%
0.33
4P1
2519
8TF
947
24N
epal
RED
D R
eadi
ness
Pre
para
tion
Prog
ram
26-A
ug-0
930
-Jun
-15
3.60
0.
73
1.43
39
.64%
2.17
5
P119
113
TF 9
8650
Prog
ram
to P
rom
ote
Dem
and
for G
ood
Gov
erna
nce
(C)
24-J
an-1
131
-Dec
-13
1.41
0.
19
1.32
93
.53%
0.09
6
P123
653
TF 9
7889
AD
KF S
mal
l Gra
nts
Prog
ram
1-M
ar-1
128
-Feb
-14
1.00
0.
00
1.00
10
0.00
%0.
00
7P1
1344
1TF
982
35N
epal
: Sch
ool S
ecto
r Ref
orm
Pro
gram
21-M
ar-1
115
-Dec
-14
120.
00
13.4
1 11
6.33
96
.94%
3.67
8
P125
891
TF 9
9675
Stre
ngth
enin
g In
stitu
tiona
l Cap
acity
of t
he D
NPW
C fo
r the
Effe
ctiv
e M
anag
emen
t of M
ount
ain
Prot
ecte
d A
reas
25-A
ug-1
125
-Aug
-14
0.50
0.
16
0.33
66
.04%
0.17
9P1
2533
1TF
992
88N
epal
: Hum
an D
evel
opm
ent -
Soc
ial P
rote
ctio
n Pi
lot P
roje
ct29
-Aug
-11
31-J
ul-1
41.
50
0.34
0.
79
52.6
9%0.
71
10P1
2408
8TF
992
74Ad
ditio
nal F
inan
cing
to th
e Po
vert
y A
llevi
atio
n Fu
nd II
11-O
ct-1
130
-Jun
-14
10.0
0 0.
47
10.0
0 10
0.00
%0.
00
11P1
2577
0TF
104
52St
reng
then
ing
PFM
Sys
tem
s in
Nep
al31
-Oct
-11
30-J
un-1
54.
30
1.49
3.
15
73.3
3%1.
15
12P1
2874
4TF
112
08N
epal
: Mak
ing
mar
kets
wor
k fo
r the
con
flict
affe
cted
in N
epal
17-F
eb-1
217
-Feb
-16
2.65
0.
43
0.79
29
.72%
1.86
13
P127
040
TF 1
0455
NP:
Str
engt
heni
ng th
e O
ffice
of t
he A
udito
r Gen
eral
23-F
eb-1
230
-Jun
-15
2.30
0.
64
0.99
43
.24%
1.31
14
P130
089
TF 1
2273
Zoon
oses
Con
trol
Pro
ject
(ZCP
) (C)
5-
Jul-1
231
-Mar
-14
10.0
0 3.
56
5.06
50
.60%
4.94
15
P129
177
TF 1
1452
Nep
al: P
ilot P
roje
ct fo
r Sei
smic
Sch
ool S
afet
y in
the
kath
man
du23
-Jul
-12
30-J
un-1
41.
37
0.10
0.
10
7.30
%1.
27
16P1
3186
0TF
124
85N
epal
PFM
-MD
TF S
tren
gthe
ning
Civ
il So
ciet
y O
rgan
izat
ions
’ use
of S
ocia
l Ac
coun
tabi
lity
to im
prov
e PF
M in
Nep
al30
-Aug
-12
30-J
un-1
40.
80
0.35
0.
70
87.4
1%0.
10
17P1
2750
8TF
135
57Bu
ildin
g Re
silie
nce
to C
limat
e Re
late
d H
azar
ds20
-Jun
-13
30-N
ov-1
815
.00
0.00
0.
00
0.00
%15
.00
P127
508
TF 1
3665
16.0
0 6.
00
6.00
37
.50%
10.0
0 18
P130
461
TF 1
3464
Out
put-
Base
d A
id fo
r Mun
icip
al S
olid
Was
te M
anag
emen
t21
-Jun
-13
30-J
un-1
74.
29
0.26
0.
26
6.10
%4.
03
19P1
2890
5TF
137
19N
epal
Agr
icul
ture
and
Foo
d Se
curit
y Pr
ojec
t30
-Apr
-13
31-M
ar-1
846
.50
4.25
4.
25
9.14
%42
.25
20P1
4535
9TF
157
80JS
DF
for P
ro-P
oor U
rban
Reg
ener
atio
n Pi
lot P
roje
ct10
-Feb
-14
30-S
ep-1
72.
75
0.00
0.
00
0.00
%2.
75
21P1
4573
6TF
162
96Ad
oles
cent
Girl
s Em
ploy
men
t Ini
tiativ
e II
10-F
eb-1
430
-Sep
-17
0.58
0.
00
0.00
0.
00%
0.58
TO
TAL
255.
40
34.1
2 15
7.62
61
.72%
97.7
8
Nep
al T
rust
Fun
d Po
rtfo
lioU
SD in
Mill
ion
15FY2014-2018
Country Partnership Strategyfor Nepal
S. No. Project ID
COFN Number
Project Effective Date
Closing Date
Net Commit. Amount
Disb. FY14
Total Cum. Disb.
% Disb. Undisb. Balance
20 P105860 COFN C1200 Poverty Alleviation Fund II 31-Jul-08 31-Dec-14 3.94 0.09 3.81 94.29% 0.13
Project Preparation FundS. No. Project
IDPPF Number
Name of Disbursing PPF Effective Date
Closing Date
Net Commit. Amount
Disb. FY14
Total Cum. Disb.
% Disb. Undisb. Balance
20 P143036 IDA Q8700 Rural Water Supply and Sanitation Improvement Project
24-Sep-13 30-Jun-14 3.00 0.00 0.00 0.00% 3.00
+ Utilization of Resources as of March 31, 2014 .* Exchange Rate Adjustment# Adjusted Trust Amount amount in columns 8 are figures derived after cancellation from original Trust Fund amount.
Note:1) The matrix presents the disbursement status of only ongoing portfolio and closed portfolio with disbursement period open. Projects which are already closed are not included in the matrix.2) Japan Social Development Fund Grant for Pro-poor Targeted Project (TF93397) extended until January 15, 2014 (extension letter dated July 31, 2012)3) Social Protection Project (TF 99288) extended until July 31, 2013 (1st extension)4) TF 94724 FCPF REDD Cell extended by one and half year with new closing date of June 30, 2015.(1st extension)
16
ExEcutivESummary
Fy2014-2018
Country Partnership Strategyfor Nepal
As of 03/31/2014 (In USD Millions)
2010 2011 2012 2013 2014*Original Commitments (US$m)
IFC and Participants 14 13 35 22 4IFC’s Own Accounts only 14 13 35 22 4
Original Commitments by Sector (%)- IFC Accounts onlyE - Transportation and Warehousing 0 0 0 32 0O - Finance & Insurance 53 98 73 57 33P - Collective Investment Vehicles 0 2 19 0 0V - Electric Power 47 0 8 11 67
100 100 100 100 100Original Commitments by Investment Instrument (%) - IFC Accounts only
Guarantee 51 98 48 57 33Loan-LN 47 0 23 43 0Quasi-Equity (Loan Type) 0 0 19 0 0Straight Equity (incl. Fund) 2 2 10 0 67Total 100 100 100 100 100
Nepal: IFC Investment Operations Program
IFC’s Committed and Disbursed Outstanding Investment Portfolio
* As of Mar 31, 2014
Committed Disbursed Outstanding
FY Approval Company Loan Equity **Quasi Equity
*GT/RM
Partici pant
Loan Eq-uity
**Quasi Equity
*GT/RM
Partici pant
2008/ 2009/ 2010/ 2011/ 2012/ 2013/ 2014
BoK 8.00 0 0 0.74 - 6.40 0 - 0.74 -
2009/ 2013 Buddha Air Nepal 5.45 0 0 0 - 5.45 0 - 0 -
2010/ 2013 Butwal Power Co 8.24 0 0 0 - 5.66 0 - 0 -
2014 Himtal Hydro - 2.000 0 0 - 0 0 - 0 -
1998 Jomsom Resort 4.00 0 0 0 - 4.00 0 - 0 -
2011/ 2012/ 2013/ 2014
Laxmi Bank Ltd - 0 0 0.04 - 0 0 - 0.04 -
2009/ 2010/ 2011/ 2013/ 2014
NIC Bank - 0 0 0.02 - 0 0 - 0.02 -
2012/ 2014 NWEDC - 3.894 0 0 - 0 3.00 - 0 -
2011/ 2012 Nepal BO2 - 0.283 6.70 0 - 0 0.28 - 0 -
2010 Nirdhan MFB - 0.187 0 0 - 0 0.19 - 0 -
2012 RMDC Nepal - 0.539 0 0 - 0 0.54 - 0 -
2009 Smartchoice - 0.350 0 0 - 0 0 - 0 -
25.69 7.25 6.70 0.79 - 21.51 4.00 - 0.79 - * Denotes Guarantee and Risk Management Products.** Quasi Equity includes both loan and equity types.
Nepal IFC Portfolio
ExEcutivESummarY
17FY2014-2018
Country Partnership Strategyfor Nepal
Proposed AAA and TA (FY14-18)FY14 FY15 FY16 FY17 FY18
Advocacy Poverty and shared prosperity Non-lending Technical Assistance (NLTA)Social protection
CEM/Growth studyNutrition policy
Mapping local service deliveryCompetitive industries diagnosticEducation PETS
FederalismQuality Hydropower dialogue, studies and TA
Fast Track study and TAFinancial sector strategy TAPublic Financial Management TA
Agriculture growthPEFA
Education sector reviewSkills development study
Advice Policy notesEconomic updatesNational risk assessment
ROSCGovernance reform Governance reform
IDA lending program FY14-18Fiscal Year Lending Indicative IDA ($ m)2014 Strengthening the National Rural Transport Program 100
Irrigation and Water Resource Management AF 50Rural Water Supply and Sanitation Project 72Others (Trust Funds): • Scaling-up Renewable Energy (SREP) – Biogas
20158 Higher Education Reform Project Total: 200-300Second Financial Sector Development Policy Credit
Energy Sector Development Policy CreditGrid Solar and Energy Efficiency Project
Kabeli A Hydroelectric Project
Technical Assistance for Preparation of Hydropower Project and Sector Reform
Others (Trust Funds): • ESMAP – Wind Energy Resource Mapping
2016 Third Health SWAp (Health, Nutrition & Population - HNP) Total: 200-300Second Energy Sector Development Policy Credit
Hydropower Project or IDA Partial Risk Guarantee (PRG)Social Safety Nets Systems Building Project
Strategic Roads Network ProjectOthers (Trust Funds): • Public Procurement Performance Improvement Project
2017 Hydropower Project or IDA PRG Total: 200-300Skills Development
Local Roads Bridges2018 Hydropower Project or IDA PRG Total:
200-300Nepal Fast Track
18
ExEcutivESummary
Fy2014-2018
Country Partnership Strategyfor Nepal
Ongoing Non Lending Activities (IFC)
Business Line No of projects* Total IFC-managed funds** (US$mn)
Access to Finance 7 2.9
Investment Climate 3 7.4
Sustainable Business Advisory 2 2.4
Total Non Lending Activities 12 12.7
* Based on primary business line** Based on product wise split for the projects*** Data as of Apr 14, 2014
IFC Portfolio and Pipeline Summary
Summary of Ongoing Non Lending Activites (IFC)
Project Name Project Description Expected End Date
Access to Finance
Sustainable Energy Finance Nepal
Improve the financial performance of Nepalese industry by reducing energy costs as well as emissions of greenhouse gases by helping 2-3 local Nepalese banks to develop a sustainable business in EE finance and promote energy efficiency within industry
FY14
AS to Nirdhan Bank The overall objectives includes: (i) support Nirdhan to expand its operations and outreach to the clients; (ii) strengthen its risk management system and processes; and (iii) diversify and introduce new products and delivery mechanisms
FY16
Nepal Payment Systems Regulatory Reform
Engage with Nepal Rastra Bank and the Ministry of Finance in Nepal to facilitate the formulation of regulations and policies concerning National Payment Systems. The project also aims to provide capacity building for NRB so that it is able to monitor and regulate the financial sector efficiently.
FY14
TA to M. Nepal on Launching of Mobile Money Initiative and Agent Network Development
Engage with M.Nepal to develop and roll out mobile financial services by developing a mobile banking strategy and product as well as an agent and risk management framework.
FY14
TA to CEDBL, Nepal - Women in Business
Increase access to finance for women entrepreneurs by providing advisory services to a Nepali bank, CEDBL on strategy, product development and portfolio development
FY15
Nepal SME Banking Improve SME banking practices in Nepal through the following 2 key objectives: (1) Developing SME Banking and Risk Management capacity among regulators and BFIs, and dissemination of SME Banking and RM global best practices through training programs; and (2) Advisory to banks on SME Banking/RM
FY16
RMDC Risk Management and Microinsurance AS
Provide advisory to RMDC across two key components: (i) Support RMDC in creating a strong risk management foundation & allow some of the largest MFIs in Nepal to prioritize RM practices. (ii) Build internal expertise & incentivize RMDC to act as an aggregator & insurance agent in scaling up of Nepal’s small & medium size MFIs’ insurance business
FY17
Investment Climate
Nepal ICRP - Regulatory Reform
The objective of the Project is to improve the investment climate in Nepal by (i) identifying and removing major regulatory constraints for starting and operating a business, (ii) reducing tax compliance burden for businesses and (iii) improving the efficiency of export-import procedures.
FY14
Nepal ICRP - Public Private Dialogue
The project will comprise of the following three components: (i) Establishment and Operationalization of NBF Mechanism; (ii) Support private sector reforms to reduce the cost of doing business and capacity building; (iii) Communications and stakeholder engagement
FY14
Nepal Investment Climate for Industry
Support the Government of Nepal in streamlining procedures related to investment, improving air safety and food standards, as well as enhancing the capacity of investment promotion agencies, which will stimulate growth of the tourism sector through additional investments.
FY16
Sustainable Business Advisory
Nepal SME Ventures Build a pipeline of investable SMEs for the Fund by igniting interest and helping SMEs develop their managerial capacity and thus become more qualified and attractive for investments.
FY17
PPCR- Promoting Climate Resilient Agriculture, Nepal
Work with agribusiness lead firms to promote improved agricultural and water management practices and introduce new technologies among smallholder farmers producing rice, maize and sugarcane to adapt to climate change.
FY17
* Data as of Apr 14, 2014
ExEcutivESummarY
19FY2014-2018
Country Partnership Strategyfor Nepal
The World Bank GroupNepal OfficeP.O. Box 798Yak and Yeti Hotel ComplexDurbar Marg, Kathmandu, NepalTel.: 4226792Fax: 4225112Email: [email protected]
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